Influencing Outcomes in a Consolidating Insurance Industry: Three Keys to Value Creation
Special Issue January 2016
Influencing Outcomes in a Consolidating Insurance Industry: Three Keys to Value Creation by Pia Tischhauser
It’s easy to see why the colourful term ‘merger mania’ has been applied to the global insurance industry. Axis– PartnerRe, Willis–Towers Watson-Gras Savoye, ACE-Chubb and Anthem–Cigna are just a few of the high-profile acquisitions announced around the world in 2015. But behind the triumphant headlines, a stark reality lies. Within the global insurance sector, only 51 per cent of acquisitions created value; 49 per cent actually destroyed it. 2 How can insurance executives influence the probability of success in mega-mergers that are, statistically speaking, simply a coin toss? This article presents a strategic framework of best practices to address the full life cycle of insurance acquisitions—proactive target search, disciplined deal execution and effective post-merger integration (PMI)—to accelerate transactions and help maximise value creation.
